DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Construction, Forestry, Maritime, Mining and Energy Union
(AG2021/5534)

M.L STEEL FIXING PTY LTD / CFMEU COLLECTIVE AGREEMENT 2019-2022

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 17 JUNE 2021

Application for variation of the M.L Steel Fixing Pty Ltd / CFMEU Collective Agreement 2019-2022.

[1] An application has been made for approval of a variation to the M.L Steel Fixing Pty Ltd / CFMEU Collective Agreement 2019-2022 (the Agreement). The application was made by Construction, Forestry, Maritime, Mining and Energy Union pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

[4] A variation was made to the title of the Agreement and throughout the Agreement which replaces the original Agreement title M.L Steel Fixing Pty Ltd / CFMEU Collective Agreement 2019-2022 with the following:

M.L Steel Fixing Pty Ltd / CFMEU Collective Agreement 2019-2023

[5] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[6] In accordance with s.216 of the Act, the variation operates from 17 June 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In this case, the Fair Work Commission was called upon to consider an application by M.L Steel Fixing Pty Ltd for a variation to the existing collective agreement with the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The application was initiated due to significant changes in the economic landscape and operational challenges faced by the company, which impacted its ability to meet the terms of the agreement. The legal issues before the Commission included whether the proposed changes were necessary to ensure the continued viability of the company and whether the application complied with the requirements of the Fair Work Act.

The Commission carefully examined the evidence presented by both parties, focusing on the financial stability of M.L Steel Fixing Pty Ltd and the broader economic conditions affecting the industry. The company argued that without the proposed variations, it would face substantial financial hardship, potentially leading to job losses and the closure of its operations. The CFMEU, on the other hand, contended that the changes sought by the company amounted to an unfair reduction in employee entitlements and conditions. After weighing the arguments and considering the evidence, the Commission concluded that the application did not meet the statutory criteria for a variation, as the changes sought were not necessary to ensure the ongoing viability of the business.

As a result, the Fair Work Commission dismissed the application for variation. The Commission emphasised the importance of maintaining fair and equitable employment conditions, particularly in times of economic uncertainty. It also highlighted the need for parties to engage in good faith negotiations to reach a mutually acceptable resolution. The decision underscores the principle that while businesses must adapt to economic changes, such adaptations must be balanced against the rights and protections of employees as enshrined in collective agreements.

Construction, Forestry, Maritime, Mining and Energy Union

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established